UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on September 7, 2010

 NOTICE OF ACTION TAKEN - DOCKET DOT-OST-2010-0222

___________________________________________________________________________________________________________________________

This serves as notice to the public of the action described below, taken by the Department official indicated (no 

additional confirming order will be issued in this matter).

Application of AMERICAN AIRLINES, INC. (American), filed 9/2/10, for:

XX Exemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between (1) Los Angeles, 

California, and Mexico City, Mexico; (2) Los Angeles, California, and Guadalajara, Mexico; 

(3) Los Angeles, California, and La Paz, Mexico; (4) Los Angeles, California, and Loreto,

Mexico; (5) Los Angeles, California, and Mazatlan, Mexico; (6) Los Angeles, California, 

and Ixtapa/Zihuatanejo, Mexico; (7) Los Angeles, California, and Manzanillo, Mexico;

(8) Los Angeles, California, and Puerto Vallarta, Mexico; (9) San Diego, California, and 

Puerto Vallarta, Mexico; and (10) San Francisco, California, and Puerto Vallarta, Mexico.1

Applicant rep: Carl B. Nelson, Jr. (202) 496-5647 DOT Analyst: Linda L. Lundell (202) 366-2336 

 

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action was effective when taken: September 7, 2010, through September 7, 2012.

Action taken by: Paul L. Gretch, Director

 Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and Mexico.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations indicated:

XX The holder’s certificates of public convenience and necessity

XX Standard exemption conditions (attached)

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Conditions: The U.S.-Mexico exemption authority granted is subject to the dormancy notice requirements set forth 

in condition 7 of Appendix A of Order 88-10-2, and the notice requirements for seasonal/intermittent service as set 

forth in Order 96-11-24, at 5. 

The exemption authority granted to American is limited to code-share services only. 

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 American proposes to use the requested authority by placing its AA* designator code on the flights of Alaska Airlines, Inc. 

(Alaska) or Horizon Air Industries, Inc. (Horizon), as soon as all regulatory approvals are obtained. In this regard, we note that 

Horizon is authorized to provide year-round direct-carrier (own-aircraft) services in the Los Angeles-La Paz/Loreto markets 

(Dockets DOT-OST-2008-0172 and DOT-2009-0180, respectively), and Alaska is authorized to provide year-round directcarrier services in the Los Angeles-Mexico City (Docket DOT-OST-2005-20406), Los Angeles-Guadalajara (Docket DOTOST-2003-14542), Los Angeles-Mazatlan/ Ixtapa/Zihuatanejo/Manzanillo/Puerto Vallarta and San Francisco-Puerto Vallarta 

markets (Docket DOT-OST-1999-6276); and seasonal direct-carrier services in the San Diego-Puerto Vallarta market (DOTOST-2010-0103).
The code-share operations conducted under this authorization are subject to the following conditions:

(a) The code-sharing operations conducted under this authority must comply with 14 CFR 257

and with any amendment to the Department’s regulations concerning code-share arrangements that may be 

adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is 

expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name 

of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier 

selling such transportation (i.e., the carrier shown on the ticket) accept responsibility for the entirety of the 

code-share journey for all obligations established in its contract of carriage with the passenger; and that the 

passenger liability of the operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that none of the subject code-share partners 

shall give any force or effect to any contractual provisions between themselves that are contrary to these 

conditions.

Remarks: We acted on this application without awaiting expiration of the 15-day answer period with the consent 

of all parties served with a copy of the application.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant 

qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was 

consistent with Department policy; (2) grant of the authority was consistent with the public interest; and (3) grant of 

the authority would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. 

To the extent not granted, we denied all requests in the referenced Docket. We may amend, modify, or revoke the 

authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s 

regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. 

This action was effective when taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at:

www.regulations.gov
ATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled 

operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the 

Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply with the 

requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation 

Security Administration, and with all applicable U.S. Government requirements concerning security, 

including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. 

Government requirements concerning security, the holder shall, before commencing any new service 

(including charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to 

advise the PSI of its plans and to find out whether the Transportation Security Administration has 

determined that security is adequate to allow such airport(s) to be served; and

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest 

as may be prescribed by the Department of Transportation, with all applicable orders and regulations of 

other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance with the 

conditions imposed above.

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